The USD/JPY pair holds its position near a 38-year high of 161.75. The Jibun Bank Japan Services PMI was revised downward to 49.4 in June, marking a reversal from May's 53.8. The US Dollar edges higher due to a recovery in yield on 2-year Treasury bond. The Japanese Yen continues to hold losses on Wednesday, remaining near its low of 161.75, a level not seen since 1986, recorded in the previous session.
The daily chart analysis indicates a bullish bias, with the pair holding ground near the upper boundary of an ascending channel pattern. However, caution is advised as the 14-day Relative Strength Index is above 70, signaling overbought conditions and suggesting a possible correction in the near term. The USD/JPY pair might test the upper boundary of the ascending channel near 161.80.